personnel costs

Employee compensation spending

Personnel costs are the expenses an organization incurs for its workforce—salaries, wages, benefits, payroll taxes, and related expenditures.

The term appears primarily in business and government contexts: Personnel costs account for sixty percent of the operating budget.

Also called labor costs or staffing costs, though personnel costs typically encompasses the full compensation package beyond just wages.

Opposites

expense category

personnel costsmaterial costs

Spending on raw inputs

cost variability

personnel costsfixed costs

Expenses unchanged by output

fixed vs. variable cost structure

personnel costsvariable costs

Expenses changing with output

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